>JJB Sports announced at the end of 2008 that it was putting its health and fitness club business and other non-core assets up for sale. It now seems as though the company has made progress with the disposal of its 50 clubs with several parties expressing preliminary interest with Lazard, the investment bank handling the sale. There is speculation that the club business could fetch between £50-£55 million. If correct, this would represent just over £1 million per club which seems good value for the purchaser given the quality of the estate. Bidders, reportedly, include JJB founder David Whelan, Sports Direct founder Mike Ashley, and Fitness First.
A spokesperson for JJB Sports commented: “There can be no certainty that any of these indications of interest will result in a transaction or as to the terms of any such transaction. A further announcement will be made when appropriate.”
Where does this leave MiFit?
So this probably means that JJB’s move into low-cost (budget clubs) is now on hold with just the Cardiff club presently open. So while the USA and Germany’s budget club sectors gain momentum, the UK seem to have stalled somewhat.
Tags: Budget clubs